Correlation Between Jinsanjiang Silicon and Zhongyin Babi
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Zhongyin Babi Food, you can compare the effects of market volatilities on Jinsanjiang Silicon and Zhongyin Babi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jinsanjiang Silicon with a short position of Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Zhongyin Babi.
Diversification Opportunities for Jinsanjiang Silicon and Zhongyin Babi
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinsanjiang and Zhongyin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi Food and Jinsanjiang Silicon is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jinsanjiang Silicon Material are associated (or correlated) with Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Zhongyin Babi
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to generate 1.54 times more return on investment than Zhongyin Babi. However, Jinsanjiang Silicon is 1.54 times more volatile than Zhongyin Babi Food. It trades about 0.02 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about -0.04 per unit of risk. If you would invest 1,182 in Jinsanjiang Silicon Material on September 26, 2024 and sell it today you would earn a total of 66.00 from holding Jinsanjiang Silicon Material or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Zhongyin Babi Food
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Zhongyin Babi Food |
Jinsanjiang Silicon and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Zhongyin Babi
The main advantage of trading using opposite Jinsanjiang Silicon and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Zhongyin Babi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zhongyin Babi will offset losses from the drop in Zhongyin Babi's long position.| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Shandong Gold Mining |
| Zhongyin Babi vs. Tianjin Pengling Rubber | Zhongyin Babi vs. Super Dragon Engineering Plastics | Zhongyin Babi vs. Jinsanjiang Silicon Material | Zhongyin Babi vs. Jiangsu Yanghe Brewery |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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